SAVI Reports - Page 20

For many families, incomes increase as they age. The constancy of the cost of homeownership means that a family that experienced increased wages over the period would progressively spend less of their household earnings on housing- related costs. In several areas of Marion County, rents have accelerated even more quickly than the average rent increase, making an investment in homeownership in these areas even better relative to renting (Figure 9). FIGURE 9. Marion County Rent Increases 2010-2014 Source: Value Maximization A second important consideration that becomes reflected in diminished supply of affordable housing is the concept of value maximization. Potential homebuyers value a bundle of aspects and amenities that are reflected in the home they choose to purchase (e.g., location, proximity to work/school/entertainment, neighborhood safety, school systems, proximity to transit or transportation, likelihood of appreciation, square footage, number of bedrooms, number of bathrooms, size of a garage, and several other factors). Individuals may value these things differently relative to other individuals, and 16